In response to fierce competition in the Chinese smartphone market, Apple offers rare discounts on its iPhones, reducing retail prices by as much as 500 yuan ($70).
The price cuts, ranging around 5%, are part of a time-limited promotion called the Lunar New Year event, lasting from January 18 to January 21.
iPhone 15 Series Struggles in Chinese Market:
Sales of Apple’s latest iPhone 15 series have faced challenges in China, with a 30% drop in the first week of 2024 compared to the same period in the previous year.
The competitive landscape, dominated by local players like Huawei and Xiaomi, has led to a tough market for Apple, prompting the rare move of price reductions.
Tough Year Ahead with Global and Local Pressures:
Analysts anticipate a difficult year for Apple globally and in China as competition intensifies and consumer reluctance to upgrade grows.
Driven by patriotism, Chinese consumers may opt for local brands like Huawei, which is returning to the market. Canalys expects Apple’s sales to remain flat globally and experience a slight decline in China in 2024.
Apple Responds to Global Pressure to Boost Sales:
Apple’s decision to cut iPhone prices in China follows a trend of global pressure on the tech giant to boost sales.
The competitive landscape and the reluctance of Apple fans to upgrade have contributed to the need for such promotional events.
This move comes after Apple surprised the market by not raising prices for the iPhone 15 series at its September launch.